December 5, 2023 • 5 min read |
But first, can I borrow that idea? |
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Dominick Reuter/Business Insider |
If imitation is the sincerest form of flattery, Walmart and Target are embarking on some serious tributes to each other. Two of the country's largest retailers are taking pages from each other's playbooks as they adjust to a changing economic landscape. From the vibes at Walmart's "store of the future" to the proliferation of Target's new low-priced deals, the similarities between the two stores are becoming undeniable, writes Business Insider's Dominick Reuter. The commonalities go beyond physical appearance or types of deals, Dominick points out. Their executives even sound like one another. Christina Hennington, Target's chief growth officer, recently said the retail giant wants to be a "holiday destination for affordable joy," thanks to Target's "everyday low prices."
If that phrase sounds familiar, it's because it's been a key part of Walmart's pricing strategy for decades.
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Dominick Reuter/Business Insider |
It's not uncommon for retail chains to borrow ideas from one another. Home Depot and Lowe's have been cribbing ideas from one another for decades. And Walmart founder Sam Walton openly admitted he stole borrowed plenty of ideas from Sol Price, the originator of the wholesale club model. But what makes the Walmart-Target dynamic so interesting is the distinct type of consumer they typically serve. While there is bound to be some overlap, shoppers tend to gravitate toward one of the two stores. The dividing line is often economic status. Historically, upper-middle-class consumers opted for Target, while lower-income shoppers headed to Walmart. However, stubborn inflation forced consumers to be more diligent with their shopping decisions. That's led Walmart to see an increase in higher-income clientele, a trend they're leaning into. Meanwhile, Target is offering more competitive promotions in a bid to meet consumers at a more comfortable price point for them. But both companies going after each other's target audience isn't about crushing the competition, Dominick told me. It's more a representation of the current economic landscape. Even if it's about swapping customers, that's a tricky strategy. A shift in a company's core offering could alienate its most loyal customers. After all, more than beating up on one another, these rivals have a bigger fish to worry about: Amazon. |
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Markets 🔔 Before the opening bell: Investors await the release of key data on employment after US stocks fell on Monday. |
Balyasny Asset Management; AQR Capital Management; Vatic Investments; Two Sigma |
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Andrew Caballero-Reynolds/Getty Images |
1. The AI startups that attracted the most investment this year. OpenAI, Anthropic, and Starlink AI topped the list of AI startups that raised money in 2023. But more than 200 startups have raised at least $50 million this year. 2. Leaked memo: Spotify CEO's message announcing layoffs. The company is cutting 17% of its headcount — around 1,500 employees. CEO Daniel Ek wrote in his email that "being lean is not just an option but a necessity." 3. VMware's future under Broadcom could see "change" and "uncertainty." Insiders and leaked memos point to drastic changes at the company. Competitors are eyeing VMware's customers, and VMware employees are facing a bit of culture shock under Broadcom. |
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Slaven Vlasic/Getty Images for The New York Times; Tesla, Inc.; Adobe Stock; iStock; Rebecca Zisser/Insider
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1. Elon Musk's Cybertruck apocalypse. The Tesla CEO says its long-awaited truck is built for the apocalypse. In reality, that's silly. But his belief in a truck that can survive suggests an even more dystopian mindset. 2. A millennial who rushed into being a manager in her 20s shares her regrets. She said that it's important for managers to help their direct reports with their development and career trajectories. But at 26, she was still navigating her own career trajectory. 3. Gen Z is opting out of working for others. Instead, they want to work for themselves. One in three Gen Zers believes the best way to build wealth is to be self-employed, according to a new survey. Gen Z is the "hustle generation," and they reject a lot of millennial attitudes about careers. |
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- The "Dancing With The Stars" season finale is tonight on ABC. The stars in contention for gold are Xochitl Gomez, Alyson Hannigan, Jason Mraz, Charity Lawson, and Ariana Madix.
- The 2024 Major League Baseball Draft Lottery will be broadcast live. It'll air on the MLB Network. The lottery will give teams that didn't make the playoffs a chance to land their top picks.
- Earnings today: AutoZone, Asana, and other companies.
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The Insider Today team Dan DeFrancesco, senior editor and anchor, in New York City. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Hayley Hudson, director, in London. Lisa Ryan, executive editor, in New York City. Get in touch insidertoday@insider.com To read unlimited articles, subscribe to Business Insider. |
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